I have never heard of it before either!
I use daconyl (sp?) to control powdery mildew on monarda and phlox in my perennials. Also for early blight on tomatoes. But, you have to start **before** the mildew gets started.
Are you a member of the AHS robin? I think I would ask about the mildew on there. I've been on the AHS robin at least 10 years, involved in daylilies close to 30, and have never heard of mildew on daylilies. Now, that is not to say that it can't happen !